UPDATE: Towers Watson Beats Q2 Expectations

reported stronger-than-expected results for the fiscal second quarter. The Arlington, Virginia-based company posted quarterly income from continuing operations of $110 million, or $1.57 per share. Its adjusted earnings from continuing operations rose 24% to $1.73 per share. Its revenue gained 8% to $957.9 million. However, analysts were projecting earnings of $1.50 per share on revenue of $912.6 million. Revenue for the Benefits segment rose 7% to $488 million in the quarter, while the Risk and Financial Services segment's revenue fell 4% to $154 million. Revenue for the Talent and Rewards segment gained 8% to $184 million, while the Exchange Solutions segment's revenue climbed 42% to $94 million. EBITDA for the quarter rose to $211 million from $172 million. "We are very pleased that the strong growth we experienced in the first quarter continued to gain momentum in the second quarter. Bulk lump sum projects and healthcare consulting drove revenue growth in the Benefits segment. Talent and Rewards delivered its strongest quarter in three years, and Exchange Solutions continued to exceed expectations, measured by both the financial results delivered, and with the quality of the annual enrollment process" said John Haley, Towers Watson's chief executive officer. For the current quarter, the company projects earnings of $1.46 to $1.51, on revenue of $890 million to $900 million. For the full year, Towers Watson expects earnings of $5.90 to $6 per share on revenue of around $3.6 billion. Towers Watson shares fell 0.12% to close at $119.60 yesterday.